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Lowe’s Companies, Inc. LOW paired a second-quarter earnings beat with a reset of its fiscal 2026 outlook. The result puts more weight on whether Pro, Online and Home Services can keep offsetting weak discretionary DIY demand.
Those growth engines remain active, but housing pressure, softer transactions and margin headwinds are shaping the second-half earnings picture. The revised outlook makes near-term execution more important even as Lowe’s continues investing in its Total Home strategy.
Lowe’s Companies, Inc. Price, Consensus and EPS Surprise
Lowe’s Companies, Inc. price-consensus-eps-surprise-chart | Lowe’s Companies, Inc. Quote
Lowe’s Q2 Beat Masks a Softer Sales Backdrop
Adjusted earnings reached $4.40 per share, up 1.6% year over year and above the Zacks Consensus Estimate of $4.22. Revenues increased 8.3% to $25,956 million but missed the consensus mark of $26,135 million.
Comparable sales rose just 0.2%. A 2.3% increase in average ticket offset a 2.1% decline in comparable transactions, showing that positive sales growth depended more on ticket growth than customer traffic.
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DIY Weakness Pulls Lowe’s Guidance Lower
Lowe’s now expects fiscal 2026 sales of about $92 billion, flat comparable sales, an adjusted operating margin of approximately 11.6% and adjusted earnings of about $12.25 per share. Each measure moved to the bottom of the prior guidance range.
Management also expects third-quarter adjusted earnings per share to be approximately 7% below the prior-year level. The reset reflects first-half results as well as current consumer demand and housing trends, keeping the near-term earnings setup restrained.
Pro and Online Keep Lowe’s Growth Mix Intact
Pro, Online and Home Services helped Lowe’s post a fifth consecutive quarter of positive comparable sales. Online sales increased 15.7%, while Pro and Home Services again contributed growth despite softer discretionary DIY spending.
The Home Depot, Inc. HD reported a 1.7% comparable-sales increase in its second quarter of fiscal 2026 and reaffirmed its full-year guidance. Its management also said customers continued to engage in smaller projects, showing that cautious project spending extends across home improvement.
Acquisitions Add Scale but Also Near-Term Drag for LOW
Foundation Building Materials and Artisan Design Group extend Lowe’s reach into distribution, construction and installation. Yet residential construction pressure is holding back the near-term contribution, with ADG fully exposed to that market and about 45% of FBM exposed.
Builders FirstSource, Inc. BLDR reported an 8.8% second-quarter sales decline, primarily because of lower housing starts and related headwinds. That backdrop helps frame the pressure facing construction-linked demand as Lowe’s integrates FBM and ADG.
